The best time to plan for your retirement was 20, 30, or even 40 years ago – but the second best time to start planning for your retirement is right now, right this very minute.
If you are serious about getting your retirement on track, and taking advantage of everything that registered retirement savings plan solutions have to offer, you need to pay close attention to all of the inside information that we are going to be able to share with you in this quick guide.
By the time you’re done with the information below, you’ll better understand exactly how the right registered retirement savings plan can help you solidify your financial future – and you’ll also understand to really improve life after retirement!
Shall we dive right in?
Start Your Registered Retirement Savings Plan Contributions ASAP
As we touched upon above, you need to make sure that you are contributing to your retirement plan just as early as humanly possible – the earlier, the better!
When you are able to contribute to your registered retirement savings plan at the age of 25, a $100 per month contribution over there with a 6% annual rate of return) will turn into $197,000 over 40 years – but that same $100 per month contributed and 45 will only turn into $16,766!
Hopefully, you understand the value of getting your retirement on track as early as you can, and we’ve just shown how advantageous it can be to begin fleshing out your registered retirement savings plan as early as you can.
Contribute Intelligently to Your RRSP
Secondly, you want to contribute intelligently and effectively to your registered retirement savings plan, understanding that it’s a lot easier (and a lot more straightforward) to simply invest smaller amounts on a consistent basis rather than dumping money into this investment vehicle in one lump sum a handful of times each year.
To contribute effectively and intelligently, you’ll want to set up monthly “deposits” into your account. This can all be established with the help of your financial planner or advisor, and thanks to the wonder of technology, you can automate the process so that it becomes completely hands-free and effortless.
It doesn’t get any better than this!
You’ve Earned This Money, and You Should Be Able to Keep It!
The real beauty behind RRSP accounts is that they allow you to build your retirement savings faster than you would have been able to otherwise – and you should be able to do so without having to fork over a tremendous amount of your returns to the tax man now were later down the line.
This is why you want to make sure that your RRSP is established the right way, established intelligently, and takes advantage of all tax breaks that you’ll be able to come across. It’s the only way to be sure that you are going to be able to keep the money that you worked so hard to earn to begin with.